- The report added that The Trade Desk has confirmed the review launched by Omnicom, while noting that the latter’s analysis has not uncovered any issues.
- Omnicom stated in a note to its clients that, in light of Publicis’ review, the company wants to run a check regarding The Trade Desk’s billing practices, according to the report.
- Publicis stated in a note last week that The Trade Desk failed an audit that was conducted by a third-party firm regarding the company’s fee structures.
The Trade Desk Inc. (TTD) shares plunged more than 8% in Tuesday morning’s trade after Omnicom reportedly launched an audit of the company’s fees.
According to a report by AdAge, Omnicom has hired a third-party firm to undertake the audit to determine how The Trade Desk bills for advertising services. This follows the actions of Publicis last week, which stated that The Trade Desk charged hidden fees.
Retail sentiment on Stocktwits around The Trade Desk trended in the ‘neutral’ territory, with the stock among the top trending tickers on the platform at the time of writing.
The Trade Desk Confirms Omnicom Review
The report added that The Trade Desk has confirmed the review launched by Omnicom, while noting that the latter’s analysis has not uncovered any issues.
“Omnicom has a rigorous and detailed approach to managing their contracts, governing campaigns and evaluating performance. They routinely monitor all campaign activity on TTD,” the firm said, according to the report.
Omnicom stated in a note to its clients that, in light of Publicis’ review, the company wants to run a check regarding The Trade Desk’s billing practices, according to the report.
What Did Publicis Say?
Publicis stated in a note last week that The Trade Desk failed an audit that was conducted by a third-party firm regarding the company’s fee structures.
The marketing firm added that The Trade Desk billed it as well as its clients for some tools that were enrolled in by TTD without any authorization evidence. Publicis also recommended its clients refrain from using The Trade Desk’s advertising technology.
The Trade Desk’s founder and CEO, Jeff Green, refuted these allegations in a post on LinkedIn. Green stated that the company had never failed any audit.
“It bothers me when leaders of non-transparent business models are critical of those of us who are setting the bar—especially when they advocate for moving dollars to more opaque platforms and transaction methods,” he added.
TTD stock is down 42% year-to-date and 63% over the past 12 months. The S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV) are up 14% over the past 12 months.
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